Analysis of the effects of Research and Development (R&D) expenditures on exports, imports and economic growth in Turkey (1990-2019 period)

Research and Development (R&D) studies are one of the most important elements for a country's success in real production and sustainable welfare increase in the 21st century. The main purpose of the study is to analyze the effects of R&D activities on exports, imports and economic growth in Türkiye. The study consists of three parts. In the first part, economic growth and development theories, the relations between R&D and innovation and economic growth and development, in the second part, R&D literature in the world and in Turkey, In the third part, the data of six variables including R&D expenditures, GDP, export amount, import amount, number of patent applications and number of R&D personnel for Türkiye's period between 1990 and 2019 were used, with these data, the effects of Turkey's R&D expenditures on exports, imports and economic growth were analyzed with Vector Autoregression (VAR) and Vector Error Correction (VEC) models. As a result of empirical analysis; it was determined that 1% increase in R&D expenditures reduces GDP by 0.59%, 1% increase in export amount increased GDP by 5.53%, 1% increase in imports reduces GDP by 3.59%, 1% increase in the number of patent applications increased the GDP by 1.88%. As a result of Granger Causality Analysis; At the 5% significance level, there is a causal relationship between the export amount (LOGIHRAC) variable and R&D expenditures, GDP, import amount and the number of R&D personnel, there is also causality between the number of patent applications and the GDP and export amount, Among other variables, it was determined that there was no causality in terms of the Granger test. In other words, the export amount (LOGIHRAC) is the Granger cause of R&D expenditures, GDP, import amount and the number of R&D personnel. In addition, GDP is the reason for the number of patent applications and the number of patent applications is the reason for the export amount.